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E1: 07: Employees Lives In Alabama (01) Works in Tennessee (43) 40 Hrs Reg Pay and Overtime Pay is Doubling (Doc ID 2998697.1)

Last updated on JANUARY 17, 2024

Applies to:

JD Edwards EnterpriseOne US Payroll - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

The gross and taxable wages are not consistently calculated when a pay type is marked exempt at a specific tax area/tax type.  Per the Oracle recommendation, we added a tax exemption to our overtime pay type setup, specific for 01-F. The following three tests were completed: 

  1. Scenario 1 test: Employee lives and works in Alabama (01) gross and taxable wages calculation results are correct.
  2. Scenario 2 test: Employee lives in Alabama and works in Tennessee (43), state with no state income tax, results are gross and taxable wages incorrectly doubled by the amount of the Overtime wages.
  3. Scenario 3 test: Employee lives in Alabama and works in Missouri (26), a state with state income tax, results are gross wages are doubled by the amount of the OT.

 

Steps To Duplicate

  1. Create Employee (P0801) With Tax Area residence set to AL (01), Tax Area Work set to TN (43).
  2. Create an Interim Payment (P07210i) with the following time entries:
    • Line 1 - enter regular pay pay type 1 for 40 hrs lump sum 2,000 
    • Line 2 - enter overtime pay type 348  for 10 hrs lump sum   500
  3. Click the purple calculator and go to Tax Details and notice that the AL (01) Tax Type F Gross wages incorrectly shows gross wages as 3,000 which doubled the overtime of 500.00, should be 2,500.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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